Friday, May 21, 2010

The correction looked overdone just north of yesterday's SPX 1,050 reference point and with some news flow catalysts, a moderate recovery bounce is underway that I expect should eventually take us at least to a retest of the 200-dmas from below with SPY $112.50 as a second target. While price is currently pausing just under R1, internals remain constructive for a close above VWAP with potential support on a retrace between SPY $108 and $108.50 or so.

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